Technological innovation in small and medium enterprises: An urgent requirement

(Baonghean) - In recent times, our province has attracted many high-tech application projects, creating prestigious products such as: TH Group's Fresh Milk Factory in Nghia Dan, Saigon - Song Lam Beer Factory, Hanoi - Nghe An Beer, Sabeco packaging, BSE Vietnam electronic components factory... Reality shows that small and medium enterprises (SMEs) need to invest and innovate technology to create quality products in order to survive and compete...

In general, the process of technological innovation in small and medium enterprises (SMEs) in our province is taking place slowly compared to other localities. The system of machinery and production lines is quite outdated, patchwork, and asynchronous, making it difficult to meet the requirements of improving product quality, so the number of enterprises (DN) creating export products in the area accounts for a low proportion compared to other localities. Many enterprises have not yet seen the importance of innovation and technological improvement for production. On the other hand, the labor force in enterprises has an average technical level, most of them are unskilled workers. Therefore, technological innovation activities in enterprises are very limited and many enterprises are still hesitant to invest because they have to spend a large amount of money. The most difficult thing for enterprises is that they have not been able to mobilize capital from different channels to invest in production lines.

Production line at Nghe An Food Joint Stock Company

Mr. Tran Quoc Thanh - Director of Nghe An Department of Science and Technology said: In addition to newly attracted enterprises, the application and innovation of advanced and modern technology in Nghe An enterprises still have weaknesses, mostly low-level technology (mainly originating from China). This problem has many causes, mainly because Nghe An enterprises are mainly small and medium-sized, have weak financial capacity, low access to finance, unconvincing business strategies, marketing work has not received attention, production and business efficiency is not high... Besides, the enterprises themselves are not aware that technological innovation is necessary, the shortest way for enterprises to develop. Most enterprises have not boldly started to implement, especially SMEs.

Automatic canned beer production line of Saigon - Nghe An Beer Joint Stock Company. Photo: Chau Lan

In the past two years, the Provincial People's Committee has had many policies and programs to support the implementation of technological innovation. Through the mechanism of encouraging and supporting enterprises to apply and innovate technology, recently, enterprises in the province have had many innovations in technology; producing products with high technology content such as: product quick freezing technology (IQF), coating technology for natural wood flooring of all kinds, animal feed fermentation technology, drip irrigation, etc. The program to support enterprises to invest in technological innovation, equipment from the Provincial Science and Technology Development Fund for enterprises is receiving attention. In 2013 alone, the Fund allocated 1,222 billion for supporting technological innovation activities in enterprises in the province. In addition, the annual organization of the program on awarding the Science and Technology Innovation Award has contributed to encouraging enterprises in the province to participate, innovate, and research technological innovation, which has brought about clear effects in the provincial business community. Many innovative technological projects of enterprises have won high prizes such as: Design of 1 meter wide sugarcane conveyor belt - Song Lam Sugarcane Joint Stock Company; Research and investment to improve green tea yeast killing machine - Truong Thinh Tea Company Limited; Improvement of the process of separating liquid and sterilizing gac products - Nghe An Food Joint Stock Company have brought practical efficiency to the production and business activities of enterprises.

According to Ms. Pham Thi Hong Thai - President of the Association of Vietnamese SMEs, the whole province currently has about 11,000 enterprises, of which about 7,000 are officially operating, of which 2/3 are service and trade enterprises and 1/3 are investing in production and business using machinery and equipment. Most enterprises mainly use quite old production technology systems or buy used production lines from abroad. On the other hand, lack of information, opportunities to contact and grasp new technology are barriers for enterprises in our province today.

In order for Nghe An SMEs to boldly invest and innovate equipment and production lines, there needs to be necessary support programs and policies from relevant sectors and levels, such as consulting support to help SMEs choose appropriate technology to solve their difficulties. More necessary is financial support, capital sources such as low-interest loans and long-term loans of 5-10 years for investment in machinery and equipment, etc.

Enterprises should proactively visit universities that have new technologies that they want to transfer to enterprises or visit enterprises that have successfully applied new technologies; boldly participate in technology and equipment fairs held annually - an opportunity to bring their products to many other localities and at the same time grasp new technologies. On the other hand, it is recommended that enterprises should not buy back or reuse old foreign technology machines when they are discarded, causing both economic losses and environmental pollution.

Thanh Hoa